Why Pakistan open its airspace for India
Good news for all the west bound travellers, the airfares have started reducing due opening of Pakistan airspace. The fares have come down by 15% instantly after the opening of Pak air space.
The closure of Pakistan airspace was giving loss to India , however it gave bigger losses to Pakistan because it lost money from Air Navigation charges.
When a aircraft flies over any country, they have to take prior permission and have to give route navigation and facilitation charges for ATC services etc. Pakistan use to earn lot of money from navigation charges .
Recently, Pakistan has made a U-turn in five days on allowing Indian planes use its area. Though this is a welcome move, which was reciprocated by India in the same measure. But more than being a “goodwill gesture” from the Imran Khan government, the about-turn by Pakistan on area is because of harsh economic realities.
On July 11, the aviation secretary of Pakistan Shahrukh Nusrat told a parliamentary committee that it would not open its airspace for Indian use until India withdraws its fighter jets from forward positions. Nusrat is also the director general of the civil aviation authority (CAA) of Pakistan.
India did not agree to Pakistan’s demand. Yet, Pakistan unilaterally issued a midnight notice to airmen (NOTAM) stating that “with immediate effect Pakistan airspace is open for all types of civil traffic on published ATS (air traffic service) routes.”
Much has been written about the Indian civil aviation sector losing money due to the closure of the Pakistani airspace. The same day when Pakistan’s aviation secretary put a precondition for withdrawing the ban on Indian use of the airspace, Civil Aviation Minister Hardeep Puri told Parliament that India spent an extra Rs 430 crore due to route diversion.
Indian flights were forced to take a longer route to avoid Pakistan airspace. Earlier on July 3, Puri had told the Rajya Sabha that total loss caused by the closure of Pakistani airspace was about Rs 550 crore (Rs 491 crore to Air India, Rs 30.73 crore to SpiceJet, Rs 25.1 crore to IndiGo and Rs 2.1 crore to GoAir).
But loss of revenue was far greater for a fragile economy like Pakistan. Operations of around 400 flights a day were affected due to closure of airspace by Pakistan, which meant loss of almost $100 million or nearly Pakistan Rs 16 billion [Rs 6.85 billion].
Pakistan earns good money from route navigation and airport charges levied on flights using its airspace or landing for maintenance or refueling. These charges vary according to the size and class of aircraft.
For a regular Boeing 737 passenger aircraft, Pakistan charges around $600-$700 a day for allowing use of its airspace for terminal navigation and landing. For about 400 flights using its airspace, Pakistan could be earning around $3,00,000 a day.
Besides, Pakistan’s aviation sector has a high demand for destinations in South and Southeast Asia. Some reports suggest that Pakistan International Airlines suffered more than $450,000 a day due to closure of Indian airspace for its use as flights to places like Kuala Lumpur and Bangkok were suspended. An available longer route made PIA flights unviable. The combined loss of the PIA and CAA was estimated to be $100 million.
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